Twenty-one percent of U.S. undergraduate students are pursuing online degrees. Despite their popularity, online degrees frequently encounter skepticism about their quality and credibility. This discrimination is not well understood, especially whether it is mitigated or amplified for degrees from prestigious institutions. To address this, we conducted a two-part study examining online degree discrimination. In a pre-registered survey of 400 managers, we found that online bachelor’s programs are perceived as less selective, offering lower-quality education and inferior networking opportunities compared to residential programs. The negative perception was slightly amplified for degrees from high-status institutions, raising questions about its real-world effects. To investigate potential hiring discrimination against online degree holders and how it varies by the institution’s status, we conducted a pre-registered resume audit study. We submitted 2,000 job applications for business positions, using identical resumes that differ only in the randomly assigned degree modality (online vs. residential) and university status (high vs. low). Online degree holders received fewer callbacks from high-status universities, but there was no modality gap for degrees from low-status universities. Post-hoc analyses showed stronger discrimination against online degrees for higher-paying, in-person positions, and roles requiring more interpersonal skills. Our findings highlight the need for high-status universities to improve program design and communication strategies to reduce discrimination and enhance graduates' job prospects. Despite the discrimination, online degrees offer opportunities for social mobility, especially as lower-status institutions, where most online enrollments occur, are key to expanding access to higher education.
